Posts Tagged ‘ExxonMobil’

Financial Speculators, Not Cost, Are the Real Oil Prices Are Rising

February 10, 2017

This week it was reported that British Gas were considering raising their prices by 9 per cent. This is frightening, as it means that the other companies may also raise their prices as well. Many people are increasingly finding themselves faced with a choice due to austerity, benefit cuts and stagnating wages. They can eat, and freeze, or stay warm and starve.

I don’t know what the reason given for raising the price of gas is. I suspect, however, from the behaviour of the oil industry, that any justification presented is spurious. William Blum in the chapter on capitalism in his book America’s Deadliest Export: Democracy, shows that the rise in oil prices aren’t due to rising costs. The cost of getting the stuff out of the ground has remained the same, despite all the guff about having reached peak oil. The real cause of the rise in fuel prices, including gas, is financial speculation, and quotes a US Senate report, The Role of Market Speculation in Rising Oil and Gas Prices. This states

The traditional forces of supply and demand cannot fully account for these increases [in crude oil, gasoline, etc.]. While global demand for oil has been increasing… global oil supplies have increased by an even greater amount. As a result, global inventories have increased as well. Today, US oil inventories are at an 8-year high, and OECD [mainly European] oil inventories are at a 20 year high. Accordingly, factors other than basic supply and demand must be examined…

Over the past few years, large financial institutions, hedge funds, pension funds, and other investment funds have been pouring billions of dollars into the energy commodities markets … to try to take advantage of price changes or to hedge against them. Because much of this additional investment has come from financial institutions and investment funds that do not use the commodity as part of their business, it is defined as ‘speculation’ by the Commodity Futures Trading Commission (CTFC). According to the CTFC, a speculator ‘does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.’ The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil to be delivered in the future in the same manner that additional demand for the immediate delivery of a physical barrel of oil drives up the price on the spot market… Although it is difficult to quantify the effect of speculation on prices, there is substantial evidence that the large amount of speculation in the current market has significantly increased prices. (p. 248).

Blum goes on to make the point that the American financial regulators have been unable to combat these rises, because their ability to do so has been taken away from them by Congress. (pp. 249-50). As a result, although it still costs ExxonMobil $20 to get a barrel of oil out of the ground, the oil itself can trade at $40, $80 or $130 a barrel. (p. 251).

So if you’re worried about paying the gas or heating oil bill, the reason it’s gone up is due the financial sector. The very people that donate to political parties, especially the Tories and employ MPs when they leave.

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Secular Talk on Poor Americans Now Using Pet Antibiotics

September 7, 2016

This is a story from another side of the Pond, but it’s relevant because it shows the kind of horrific medical system that the Blairites and the Tories are introducing over here through the destruction of the NHS. In this piece from the atheist/ secularist news channel, Secular Talk, Kyle Kulinski comments on a story in Raw Story from a report from a respected medical journal, The Journal of Antibiotics. A survey was done of 400 people in Houston, Texas, asking them how they obtained their antibiotics. These were people, who needed the drug, not those who did not. Kulinski is very clear to dispel this possible misunderstanding, as the overprescription of antibiotics is a separate issue. It’s responsible for the development of antibiotic resistant bacteria, which is a serious threat to health around the world.

This is about people, who genuinely need the drug. It investigated how people obtained it, when they could no longer afford it. About a quarter had saved up supplies of the drug. Another 12 per cent talked about getting it from friends or relatives. And 4 per cent took pet antibiotics. As Kulinski points out, animals metabolise drugs in a different way. This shows how desperate the poor are in America when they can’t afford healthcare.

Kulinski describes this disgusting state of affairs in justifiably strong language. He points out how its shows the twisted attitude of the country’s political elite, who have been bought by the corporations. Many Americans can’t afford medicines. The country’s infrastructure is falling apart. In some places there isn’t any clean water. But the country has spent $7 trillion on the Iraq War. It’ll be paying it off until 2053. $80 billion has spent bailing out the banks. $4 billion or so was given by the government to the oil company, ExxonMobil, to help with their research and development, despite the fact that this is one of the richest companies in America. He makes the point that America can afford to spend all this money on pork barrel projects for companies, and making wars on ‘Brown people’ who have never invaded us. But somehow it can’t afford to spend money on healthcare, despite the fact that singlepayer is actually cheaper than the insurance system already in place.

Nearly all of these criticisms can be directed at our parliament, and our politicos in New Labour and the Tories. Blair was all too eager to invade Iraq as George Dubya’s poodle. We’re sending our sons and daughters to fight and die in a country that never attacked us, despite all the spin and lies about how Hussein was in league with Bin Laden, and ready to launch weapons of mass destruction at 45 minutes notice. And Blair and the Tories are selling off our healthcare system, so it won’t be long before we have people in this country saving antibiotics, or using stuff that’s been prescribed for their dogs and cats. We’ve already seen 4.7 million of us forced into food poverty. That’s people, who don’t have enough to eat, or don’t know when or where their next meal’s coming from. But we have more than enough money to support the Iraq War, and for Cameron, May and Bomber Benn to talk about attacking Syria. We’ve more than enough money to spend on Trident, a weapon system we don’t need, which will set us back trillions. And despite the spin, the majority of jobs it’ll create are in America. And apparently we’ve got enough money to go threatening to start a war with Russia, despite the fact that Putin isn’t a threat, and the people being genuinely persecuted in Ukraine is the ethnic Russian minority.

Oh yes, and as someone who believes in socialism and the trade unions, I have difficulty in understanding why I should be called upon to support a war for a government that includes Nazis and brutally attacks trade unionists. That’s right – the coalition currently ruling the Ukraine includes the Nazis from the Pravy (Right) Sektor. When I say ‘Nazis’, I mean Nazis. The real thing. People who wear the insignia and regalia of the auxiliary SS units and nationalist organisations that collaborated with the invading Nazis during the Great Patriotic War. Unreconstructed anti-Semites, who revere the memory of those responsible for the Holocaust and the pogroms against Jewish Ukrainians. During the ‘democratic’ demonstration that ousted Yanukhovych from power in Maidan Square in Kyiv, a group of these attacked a group of trade unionists, throwing several of them out of the upper floors of one of the buildings into which they’d fled. Red Ken in his 1987 book, Livingstone’s Labour, condemned the way the West had recruited Nazis, including participants in the Holocaust, as part of the global campaign against Communism. And he’s right. We shouldn’t have recruited them and given them sanctuary, and we shouldn’t be supporting a bunch of Nazi collaborators now.

This is what British and American politics has degenerated into. We’re bankrupting ourselves for wars against people, who’ve done us no harm, while denying our own people healthcare, food and clean water. All for corporate profit.

Secular Talk on the Democracy Spring Protests in Washington

April 20, 2016

I don’t know if the media over here have covered it, but last week there was a mass protest – and mass arrests – at the Democracy Spring demonstration in the American capital. 600 people marched against the corporate corruption of US politics from Philadelphia to Washington DC, where they protested on the steps of the Capitol itself. 400 people were arrested, including The Young Turks’ Cenk Uygur. It was the largest mass arrest at a demonstration in the nation’s history.

In this video, Secular Talk’s Kyle Kulinski talks about the protests, and why these people are American heroes. He points out that 90 per cent of the time, the party that spends the most wins the election, and this money comes from corporate donors. As a result, the decisions of the country’s government reflects what their donors want, not what the people of America really want. And the effect on American democracy is devastating. According to polls, the percentage of the American populace, which believes that their government is doing a good job, varies from 9% to 20%. And the way in which the donors’ interests are reflected in official policy, while that of Mr and Mrs J. Public are ignored, can be seen in the following.

Wall Street extensively bankrolls politicos’ campaigns. As a result, the banks were bailed out using the hard-earned tax dollars taken from America’s middle class. And then the banks carried on as before, claiming that they needed all that money spent on them to retain all their talent. The same talent that was responsible for the horrific mess in the first place. Yet if your local shop or laundrette goes under, it most definitely will not be bailed out, ’cause the shopkeeper or small entrepreneur ain’t paid his official bribes to the politicians. And it goes on. ExxonMobil receives millions upon millions in public funding, yet it clearly doesn’t need all that for research and development, as it claims. Similarly, America has a massive military budget, thanks to lobbying from the military-industrial complex.

And the desires of ordinary Americans are being stymied and frustrated. Eighty per cent of the people across the Pond want the minimum wage to be raised. But this isn’t on the table, as the corporate donors don’t want it. Sixty per cent of Americans don’t want there to be cuts to welfare, medicare and education. But the government has been trying to do that for the past six years.

Kulinski points out that Obama is as radical as is possible under the present system of corporate politics. But he’s hardly radical anywhere else. In fact, he’s centre right. And his politics largely reflect what the donors want, not what they American people themselves want or need. Only seven per cent of Americans support the war in Afghanistan. It’s now more unpopular than Vietnam. But thanks to the money spent by the corporations, nobody is talking about pulling out.

For Kulinski, the message is clear that what is needed is get the corporate sponsorship out of politics.

Here’s the video: https://www.youtube.com/watch?v=cLk0jMRTE70

I’ve reblogged it, because yesterday and today I’ve put up pieces from George Monbiot’s Captive State, about how the corporations have corrupted politics in this country. Indeed, one of the pieces I put up today was about how senior managers from the supermarket chains not only lobby parliament and the European Union, but also occupy governmental posts in the very departments that are supposed to regulate them.

Mike today also put up a piece over at Vox Political, commenting on a Vice report about the row that’s blown up in the Labour Party over its refusal to invite McDonald’s to the party conference. The party members making the noise claim that it this is simply due to the party wishing to make a facile gesture at working class morality and solidarity. The reality is that many Labour MPs have done very well out of the largesse of McDonald’s and the other corporate donors. And the restaurant chain has no business turning up at the conference of a party, founded partly to represent the trade unions, when it refuses to recognise them. Read Mike’s article at: http://voxpoliticalonline.com/2016/04/20/what-an-argument-about-mcdonalds-tells-us-about-the-labour-party/

Of course, one of the first things Bliar did when he took power in the Labour party is threaten to cut ties with the unions, if they didn’t jump his way. And his protégés have continued to threaten working class people, supporting the destruction of workers’ rights and cuts to welfare benefits. All in the name of increasing ‘workforce fluidity’ and ingratiating themselves with the predatory middle class.

My guess is that the row over McDonald’s is partly about Corbyn’s leadership, and the fear amongst the Blairite’s that working class consciousness and class war might just come back in. But I think there’s also a fear about what’s happening in America. Britain, like America, has thrown open the doors of government to the corporate rich. Corporate donors funded the parties and took on politicians and senior civil servants when they retired or lost their seats. At the same time, the parties gave donors like McDonald’s what they wanted, and appointed fat cat millionaires like David Sainsbury to government posts. Now people in America are getting upset at that cosy and corrupt relationship. There’s been a news blackout about the protests by the corporate shills in the Land of the Free, and my guess it’s rattling a few cages over here as well. Corporate profits might be hit! Ministers might find themselves without a retirement job! The people just might have a little more power over their masters! And that’s frightening to an awful lot of people on both sides of the House.

Britain desperately needs some of those protests that took place over in America. Before the corporations stamp out freedom on this side of the Atlantic as well.